Sri Lanka approves emergency fuel purchases amid supply concerns

Tuesday 17 March 2026 - 15:45

Sri Lanka’s cabinet has authorized emergency spot purchases and issued new tenders for fuel to address a shortfall of over 90,000 metric tons of crude oil, President Anura Kumara Dissanayake announced on Tuesday.

The island nation, recovering from a severe financial crisis that peaked in 2022, faces increased pressure on fuel supplies due to geopolitical tensions linked to the U.S.-Israeli conflict with Iran. Sri Lanka relies heavily on imports and has implemented energy conservation measures, including a public holiday every Wednesday and fuel rationing over the past weekend.

Fresh tenders will be issued for petrol, diesel, and crude oil shipments, while the cabinet has approved spot purchases outside the standard tender process. A 33,000-metric-ton LPG shipment is expected to arrive within the next two days. Additional fuel will be allocated to farmers, fishermen, and tourism workers to maintain essential economic activities.

Earlier, the cabinet also approved the emergency purchase of 300,000 tons of coal from India to support power generation, highlighting the government’s urgent measures to secure energy stability.